EQ Resources Takes Stake in U.S. Tungsten Processing JV

Australian tungsten producer EQ Resources has agreed to take a 10% interest in a new U.S. joint venture that aims to restart the Springer ammonium paratungstate, or APT, processing plant in Nevada, giving the company a strategic foothold in the North American critical minerals supply chain.

Under the binding framework agreement , The Elmet Group would own 70% of the venture and serve as operator, while Blue Moon Metals would hold 20% and EQ Resources the remaining 10%.

The existing Springer facility is designed for roughly 4,000 tonnes per year of APT processing capacity in its first phase. The plant is currently on care and maintenance and will require refurbishment, upgrades and commissioning before production can resume.

Elmet will provide the first $75 million of restart funding, which EQ Resources said is supported by financing from the U.S. Department of War. Blue Moon will contribute the existing processing plant and associated infrastructure while granting the joint venture full offtake rights over tungsten concentrate produced at the Springer mine.

EQ Resources' direct funding exposure is limited in the initial stages. If restart costs rise above $75 million but remain below $100 million, EQ Resources would fund 12.5% of the additional spending, capped at $3.125 million. Costs above $100 million would be shared by the partners according to their ownership stakes.

The deal also creates a new outlet for EQ Resources' Australian and Spanish tungsten production. The venture plans to enter into an eight-year, spot-priced agreement to buy an aggregate 4,000 tonnes of contained WO3 in concentrate from EQ Resources, equivalent to a nominal 500 tonnes per year after the plant is commissioned.

For the first five years of operations, EQ Resources would also have access to as much as 1,000 tonnes per year of processing capacity at Springer, equivalent to 25% of the planned first-phase capacity.

Beyond supplying concentrate, EQ Resources will contribute engineering, project management, commissioning and ore-sorting expertise. The parties are also considering licensing the company's ore-sorting technology for use at Springer.

The transaction gives EQ Resources greater exposure to a U.S. tungsten market that has become increasingly strategically important as Washington and its allies seek to reduce dependence on concentrated overseas supplies of critical minerals. Tungsten is used in defense, aerospace and high-performance industrial applications, making domestic processing capacity a growing strategic priority.